Congress delivers tax relief in the nick of time

After weeks of heated debate and controversy, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 on Dec. 17. This article examines how the new act affects businesses and individuals. It discusses such topics as income tax rates, payroll taxes, capital gains and dividends rates, and estate and gift tax changes. A sidebar lists other breaks that have been extended or expanded.
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The home-office deduction: What you need to know

According to the IRS, a workspace must meet certain tests to qualify for the home-office deduction. This article lists those tests, shows which expenses are deductible, and explains how to account for the deduction when declaring taxes.
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SBJA creates tax-planning opportunities

On Sept. 27, President Obama signed the Small Business Jobs Act of 2010 (SBJA), which created $30 billion in funding for small business loans. It also provided several tax incentives for businesses — both large and small. In light of these incentives, this article lists three actions to consider in 2011, including getting rid of “built-in gain” property and reviewing business credits.
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Tax Tips

This issue’s “Tax Tips” section addresses the Electronic Federal Tax Payment System (EFTPS), and why businesses using paper coupons to submit federal payroll tax deposits must now switch to it. It also shows how defined value gifts can limit tax exposure, and states the importance of donors being sure that charities are in good standing with the IRS.
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$1.80 PSF Accelerated Tax Deduction on a Building Built After
December 31, 2005

I always enjoy finding hidden gems in the tax law and this would be one of them.  Often times when I tell property owners that they have to write off their building over 39 years, they are less than happy.  Fortunately, there are strategies out there, but some of them receive little press and often go unused such as this one.

Overview
In 2005, the Energy Policy Act of 2005 was passed which created Section 179D tax credits.  This provision allows a property owner to take a deduction of up to $1.80 per square foot on a building built after December 31, 2005.  The main idea was to encourage a reduction in energy consumption.  When first enacted it was available from the beginning of 2006 through 2008.  The Emergency Economic Stabilization Act of 2008 later extended this option through 2013.  Full Article

About the Author

Steve Leen, CPA has over ten years of tax and accounting experience.  Steve understands the complexity of small to mid-size organizations and works with clients to uncover their needs and help them grow their business.  Contact Steve Leen at 320-650-0241 or sleen@kdv.com.